HSBC 2012 Annual Report Download - page 472

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
25 – Investments in subsidiaries / 26 – Assets held for sale and other assets
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Details of all HSBC subsidiaries will be annexed to the next Annual Return of HSBC Holdings filed with the UK
Registrar of Companies.
All the above make their financial statements up to 31 December except for HSBC Bank Argentina S.A., whose
financial statements are made up to 30 June annually.
The principal countries of operation are the same as the countries of incorporation except for HSBC Bank Middle
East Limited which operates mainly in the Middle East and North Africa and HSBC Life (International) Limited
which operates mainly in Hong Kong.
In February 2013, we announced an agreement to sell HSBC Bank (Panama) S.A. to Bancolombia S.A. For further
details see Note 45.
During 2012 and 2011, none of the Group’s subsidiaries experienced significant restrictions on paying dividends or
repaying loans and advances.
Acquisitions
In June 2012, HSBC merged its operations in Oman with the Oman International Bank S.A.O.G. for total
consideration of US$0.2bn. HSBC owns 51% of the combined entity, HSBC Bank Oman S.A.O.G., which had net
assets of US$0.8bn immediately following the merger.
In October 2012, HSBC acquired the onshore retail and commercial banking business of Lloyds Banking Group in
the United Arab Emirates for a total consideration of US$0.1bn. As a result of the transaction HSBC acquired net
assets of US$0.2bn.
SPEs consolidated by HSBC where HSBC owns less than 50% of the voting rights
Carrying value of total
consolidated assets Nature of SPE
2012 2011
US$bn US$bn
Barion Funding Limited ................................................................. 3.9 3.8 Securities investment conduit
Bryant Park Funding LLC .............................................................. 0.9 2.8 Conduit
HSBC Home Equity Loan Corporation I ....................................... 2.0 2.1 Securitisation
HSBC Home Equity Loan Corporation II ...................................... 2.2 2.4 Securitisation
HSBC Receivables Funding, Inc. II ............................................... – 1.9 Securitisation
Malachite Funding Limited ............................................................ 3.4 3.6 Securities investment conduit
Mazarin Funding Limited ............................................................... 8.0 8.0 Securities investment conduit
Metrix Funding Ltd ........................................................................ – 0.7 Securitisation
Metrix Securities plc ....................................................................... – 0.4 Securitisation
Regency Assets Limited ................................................................. 10.1 7.5 Conduit
Solitaire Funding Ltd ...................................................................... 11.3 12.5 Securities investment conduit
In addition to the above, HSBC consolidates a number of individually insignificant SPEs with total assets of
US$17bn. For further details, see Note 42.
In each of the above cases, HSBC has less than 50% of the voting rights, but consolidates because it has the majority
of risks and rewards of ownership of the SPE, or the substance of the relationship with the SPE is such that its
activities are conducted on behalf of HSBC according to its specific business needs so that HSBC obtains benefit
from the SPE’s operation. The consolidation of SPEs sponsored by HSBC is discussed on page 384.